Business Matters: Schlotzsky’s in Brooklyn Center

Schlotzsky’s open second Minnesota location in Brooklyn Center, complete with Cinnabon & Carvel Ice Cream

Schlotzsky’s signs huge expansion deal

By Jan Buchholz

Austin-based Schlotzsky’s Deli has signed its largest multi-unit deal in a single period in company history.

The company plans to open 61 locations in Orange County, Calif., Arizona and Minneapolis, Minn.

John Fehmer and Anastasia Rusakov signed on to operate 25 tri-brand locations in Orange County. Those brands include Schlotzsky’s, Cinnabon and Carvel. The duo currently owns and manages retail dental hospitals in Southern California.

Gene Denison will open 30 tri-brand stores across Arizona. He has been an executive with local and national grocery store chains.

Loren and Kathy Fliflet will open six tri-brand locations in Minneapolis. They currently own Massage Envy franchises.

Schlotzsky’s was founded in Austin in 1971 and encountered some rough waters when it filed for bankruptcy in 2004. It was acquired in 2006 by Focus Brands Inc. and business has been on the upswing since then. Focus Brands is owned by private equity firm Roark Capital Group.

Currently the company operates about 350 stores worldwide with plans to grow to between 600 and 700 locations by 2015. In the past two years, Schlotzsky’s has undergone an aggressive rebranding process with new store designs and signage.

Source: Austin Business Journal